Principles of International Business Management Essay

Principles of International Business Management - Essay ExampleHaving established itself on a whole footing within the domestic food markets, the association started looking for avenues of growth in foreign markets. To undertake much(prenominal) an initiative, the company studied took stock of its internal as well external factors which drive its urge for entry a foreign market. Internal factors ar of course the strengths of the company while external factors were compiled after doing an environs analysis. In addition the company also undertook an analysis of PESTLE factors for the particular markets, where the company was supposed to go. solely such factors were not looked into in isolation, because one particular factor might have a spillover effect on couple of other factors and vice-versa. All such permutations and combinations were taken into account while preparing for an expansion strategy.Reckitt Benckiser has over the course successfully implemented the strategy of building strong brands across all its key categories like turn up care, fabric care, dishwashing, home care, health and personal care and food. If Lysol is a leading brand in bactericidal cleaning, Calgon holds the number one market position in fabric care in Europe. Similarly rigid are the major categories like Vanish (fabric care), Veet (cosmetic depilatories), Mortein (pest control) and Airwick (air fragrance). The company highlighted the brand equity to its fullest potential, while negotiating with foreign collaborators for investing in a new market. This strategy paid off rich dividends for the company with its top 15 brands consistently accounting for a majority of the companys revenues, from 40% of total revenues in 2001 to about 56% in 2005. Such a brand creation in different categories allows Reckitt toDifferentiate its products and earn a expenditure premium and Provides a agonistic advantage to the company in the market place. In addition the company also resorted to ambush marketing depending upon the scenario of competition in some of the foreign markets. For example, in one such recent case (23 Nov 2006), the company also won a legal battle against its rival in India, Hindustan Liver Ltd. (HLL), when the courts upheld the contention of Reckitt Benckiser concerning the advertisement of Dettol soap.For marketing the products the company has been dependent on Supermarkets and hypermarkets which form the most most-valuable distribution channel, e.g. accounting for 65.2% of the UK markets value and 69.5% of the European markets value.The company used innovation as its core competitive strategy which helped the company in creating product differentiation and providing it the competitive edge.Motivational factors for undertaking foreign investments are mainlyTo tap the vast consumer market outside Europe and UK. Markets in India, China and other Asian countries are developing very fast and these markets have immense potential for a company deal ing with consumer items.The company had established itself quite well in the home market and wanted to move on in newer markets.Company wanted to take the competitors head on, not only in domestic market but in overseas market as well.To